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Diets For You announced today that it will begin paying annual dividends next year. The first...

Diets For You announced today that it will begin paying annual dividends next year. The first annual dividend will be $.15 a share. The following dividends will be $.25, $.35, and $.60 a share annually for the following three years, respectively. After that, dividends are projected to increase by 4% per year. How much are you willing to pay to buy one share of the stock today if your desired rate of return is 10%?
8.73
8.67
8.41
8.12
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4.0% Ke 10.0% Present Value Pv Factor 0.9091 $ D1 0.15 0.14 0.8264 $ D2 0.25 0.21 0.7513 $ 0.26 D3 0.35 0.6830 $ D4 0.6 0.41

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